How Payday Super Impacts Your Cash Flow
- Tim Goode
- Feb 1
- 2 min read
Updated: 18 hours ago
Planning for Payday Super: What You Need to Know
As of 1 July 2026, Payday Super is set to change the way businesses manage super payments for employees. This is an important change that will affect cash flow and working capital for every business, especially in the construction industry where pay cycles and budgets are tightly managed.
In our previous blog, we outlined the key changes Payday Super brings: superannuation will need to be paid concurrently with your pay cycles, whether weekly, fortnightly, or monthly, instead of quarterly. With these updates, it’s essential to prepare for the cash flow impact and ensure your business smoothly transitions into this new process.
How Payday Super Impacts Your Cash Flow
Starting in July, there’s an important cash flow adjustment to account for.
You'll still have your June quarter super due by 28 July.
You’ll begin paying superannuation on a regular basis, according to your pay cycle, from 1 July onwards.
For businesses accustomed to quarterly payments, this shift means you need to budget for additional working capital to cover both the June quarter obligation and the ongoing super payments under Payday Super.
Use the Payday Super Calculator to Plan Ahead
The numbers can get complex, which is why we recommend using the Employment Hero Payday Super Cash Flow Calculator it’s a simple tool that helps businesses estimate how much cash they’ll need to set aside before the July transition.
Here’s how it works:
Enter your gross wages per pay cycle.
The calculator will show the weekly or fortnightly superannuation amount.
It also accounts for pre-July obligations, ensuring you have the necessary funds ready.
Example:
Suppose your business has weekly pay cycles and a gross payroll of $10,000 per week. At the current super rate of 12%, this means super contributions of $1,200 per week.
For the June quarter (13 weeks), your super obligation totals $15,600.
You’ll also need an additional 3-4 weeks’ worth of super saved by 1 July to meet Payday Super requirements, a further $3,600 to $4,800.
In total, you would need around $20,000 set aside to ensure smooth compliance with your super obligations and avoid penalties or SGC (Superannuation Guarantee Charge).
What to Do Now
Check Your Numbers: Use the Employment Hero calculator below to determine exactly how much you need to budget for. See below to access the calculator.
Plan Ahead: Start setting aside sufficient funds between now and July to avoid cash flow issues.
Ask for Help: If you have questions about Payday Super or need guidance on cash flow planning, reach out to us, we’re here to help.
Payday Super is a big shift, but with the right planning, you can stay ahead of the change and protect your business from unnecessary stress and penalties. Let’s work together to ensure you're ready to weather this transition with ease.
If you’d like to talk more about how this impacts your business, let's chat.
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